DUBLIN, Ireland-Esat Telecom’s board of directors said the offer made by Newtel AB in a hostile takeover bid is “derisory and fundamentally undervalues the group,” in a statement released last Tuesday. The board unanimously recommends that shareholders reject the offer and make available a defense document.
“We are wholly committed to maximizing shareholder value,” said Esat Telecom. “The management has delivered 400-percent growth in its share price since the IPO just two years ago. … Newtel’s offer doesn’t even come close to reflecting our strong operating fundamentals, or our clear strategy for growth and value creation.”
Newtel, the vehicle for Telia-Telenor’s Esat bid, offered $36 per share, or $72 per each American Depository Receipt. Newtel is expected to formally respond to Esat’s defense document this week.
